💰 Financial Performance

Revenue Growth by Segment

Revenue grew 261% YoY to reach INR 8,923 Cr in FY25. H1 FY26 revenue mix was 57% India Private, 23% India Government, and 20% International.

Geographic Revenue Split

In FY25, India accounted for 79% of revenue while International markets contributed 21%. In Q2 FY26, the mix remained consistent at 79% India and 21% International.

Profitability Margins

Gross profit increased multifold in FY25. EBIT margin improved from 3.8% (INR 93 Cr) in FY24 to 10.1% (INR 905 Cr) in FY25. Q2 FY26 reported a loss of INR 307 Cr due to INR 190 Cr in inventory and warranty provisions.

EBITDA Margin

EBITDA margin increased from 11.1% (INR 275 Cr) in FY24 to 14.1% (INR 1,258 Cr) in FY25, driven by higher absorption of fixed costs on multifold revenue growth.

Capital Expenditure

Long-term borrowings of INR 118 Cr were primarily used to fund CAPEX for ramping up the product portfolio and R&D facilities.

Credit Rating & Borrowing

ICRA assigned a rating of [ICRA]A+(Stable)/[ICRA]A1+. Total borrowings stood at INR 4,166 Cr as of October 2025, primarily for working capital and CAPEX.

⚙️ Operational Drivers

Raw Materials

Telecom components and EMS services represent the bulk of material costs, which increased significantly to support the 100,000+ site 4G project.

Key Suppliers

Not disclosed in available documents, though the company notes a risk regarding the limited availability of EMS and component suppliers.

Capacity Expansion

Delivered 100,000+ sites for a single-vendor 4G RAN network in less than 18 months by the end of FY25.

Raw Material Costs

Cost of materials increased significantly in FY25 due to the 4G project execution, though manufacturing and service expenses as a % of revenue decreased.

Manufacturing Efficiency

Operating expenses as a % of revenue reduced from 17.3% in FY24 to 8.0% in FY25 due to massive scale benefits.

Logistics & Distribution

Freight costs increased in FY25 driven by the logistics required for the 100,000+ site 4G project execution.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth will be achieved through the expansion of BSNL's 4G network, 5G upgrades, international 4G/5G POC conversions, and entering the data center value chain through the Tata ecosystem.

Products & Services

4G RAN (Radios and Baseband), Optical Transmission equipment, Packet Transport equipment, and Wireline Backhaul networking products.

Brand Portfolio

Tejas Networks

New Products/Services

New product focus includes Greenfield 5G SA, 5G upgrades for existing 4G sites, and data center networking solutions.

Market Expansion

Targeting international expansion in 75+ countries and winning contracts with electric utilities in South East Asia.

Market Share & Ranking

Supplied one of the world’s largest single-vendor 4G RAN networks; specific market share % not disclosed.

Strategic Alliances

Majority owned by Panatone Finvest (Tata Sons); strategic wireline partner for Vodafone Idea and 4G partner for BSNL via TCS.

🌍 External Factors

Industry Trends

The industry is shifting toward 5G and data center networking; Tejas is positioned as a key vendor for India's indigenous 4G/5G stack.

Competitive Landscape

Competes with global telecom equipment vendors; faces risks from aggressive pricing and rapid technological changes.

Competitive Moat

Moat includes Tata Group backing, PLI scheme eligibility (INR 468 Cr recognized in FY25), and being a single-vendor for a 100,000+ site network.

Macro Economic Sensitivity

Sensitive to demand variations and economic downturns; mitigation involves expanding geographical footprint.

Consumer Behavior

Demand is driven by telcos' need for 4G expansion and 5G upgrades to handle increasing data traffic.

Geopolitical Risks

Subject to trade barriers and national security implications for strategic networks like defense.

⚖️ Regulatory & Governance

Industry Regulations

Complies with DoT and PLI scheme conditions; received INR 84.95 Cr as the first tranche (85%) of Q4 FY25 PLI incentive in Nov 2025.

⚠️ Risk Analysis

Key Uncertainties

Delay in PO conversions (INR 1,500 Cr BSNL add-on) and potential failure of products in international trials/POCs.

Geographic Concentration Risk

High concentration in India, which represents 79% of revenue and 93% of the current order book.

Third Party Dependencies

Dependent on EMS providers and component suppliers; limited availability is a key operational risk.

Technology Obsolescence Risk

High risk due to rapid technological changes; company tracks global standards to ensure product roadmap alignment.

Credit & Counterparty Risk

Trade receivables increased 235% YoY to INR 4,884 Cr in FY25, reflecting project milestone-based billing cycles.